To Shareholders and Investors

Interim Business Reportfor the85th Term

From April 1, 2017 to September 30, 2017
Securities Identification Code: 6455

T o p Me ssag e

Greeting

Since our company was founded in 1907, for over one
hundred years we have shared the path with the history ofJapan’s firefighting technology development as a top
manufacturer of fire engines. We would like to express ourdeepest appreciation for the warm support and patronage ofshareholders and all those concerned.
Morita Group has the slogan “Protecting Human Life andMother Earth” and deploys the four businesses of fire fighting
vehicles, fire protection equipment & systems, recyclingmachines and environmental conservation vehicles whileworking hard on the themes of “protecting irreplaceable lifeand property from disasters” and “protecting the lush green
natural environment”.
For the purpose of securing human resources necessary torealize these themes, we are making efforts to create a work
environment where diverse values held by employees arerespected regardless of gender, nationality, age and otherfactors and where each employee is encouraged to fully utilize
their talent and ability, supported principally by work-stylereforms and the promotion of women’s activities inworkplaces.
In addition, “exploiting new markets”, “increasing profitability ofexisting business”, “enhancing the R&D” and “carrying out
investment for sustainable growth”, as stated in the Mid-term
Plan established in FY2016, are now our basic policy and wewill continue to aim to make great strides, improve corporate
value and contribute to society.
We sincerely thank you for your continued support in thefuture.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, PresidentOverview of the first half of 85th Term
Net sales¥27,516 million
Year on year

Down 6.9%

Operating income¥950 million
Year on year

Down 48.6%

During the second quarter of FY2017 our economy continued
to see corporate earnings and employment situations on arecovery trend on the back of various economic measures
implemented by the government; however, the future of thedomestic and overseas economic situation remains uncertain
because of the unpredictable policies being adopted by thenew administration of the United States and the risinggeopolitical risk involving North Korea.
In such circumstances, our group has been working on various
measures aimed at increasing our corporate value for theOrdinary income¥1,242 million
Year on year

Down 39.4%

Net income attributable toowners of parent company¥664 million
Year on year

Down 49.1%

second year of our 3-year Mid-term Plan, “Morita Advance Plan1000.”
With respect to our business performance, net sales decreasedby ¥2,054 million from the year-ago period to ¥27,516 million(-6.9%). Operating income decreased by ¥900 million to ¥950
million (-48.6%), ordinary income, by ¥809 million to ¥1,242
million (-39.4%), and quarterly income attributable to theowners of the parent company, by ¥640 million to ¥664
million (-49.1%) year-on-year, respectively.

Morita News*

Morita fire fighting vehicles topic!

Fire Fighting
Vehicles Business

Won the FY2014 Good Design Award.***Japan Industrial Designers’ Association**‌Award by the Japan Institute of DesignPromotion

Let us now present to you our next-generation fire fighting vehicle thatwill renew the firefighting strategy: MVF Multi-Purpose Fire Fighting
Vehicle with 13m Aerial Platform.
MVF stands for MORITA VARIOUS FIGHTER.
MVF was born as a new type of fire fighting vehicle designed for a widerange of fire fighting and rescue operations.

MVF saves time!
The greatest feature of MVF’s multipurpose functions is the boom equipped with a basket that canaccommodate up to 3 people. The flexible boom supports a wide range of rescue activities.
Different from a large-size ladder truck, MVF is capable of smoothly moving into all sorts of fire scenes andhas a high reputation on its mobility.
Furthermore, the new MVF with a 4x4 chassis performs a wider range of activities.

MVF has a fire extinguishing capacity equal to that of a Water Tender!
MVF also has a fire extinguishing capacity equivalent to that of a normal firefighting vehicle. It is compact, and carries a class A-2 pump and a 900 liter watertank as a normal fire fighting vehicle does, that enables MVF to discharge water
expeditiously upon arriving at the fire scene. MVF is also equipped with the latest
fire extinguishing system, CAFS, that can efficiently extinguish a fire with a smallamount of water. CAFS is easily operated. Its hoses are light and easily handled by
firefighters, which reduces their work load at the fire scene.
Furthermore, the boom is equipped with a telescopic water pipe which easily
enables water to be discharged from above.
[Posted photo shows a concept vehicle]

MVF provides sufficient storage space!
MVF provides compartments with sufficient space for storing extinguishing equipment on both sides of its
body. In its compartments, it can accommodate hoses, other fire equipment and materials to cope withdiversifying firefighting activities required at each fire scene.

MVF won a Good Design Award!
MVF’s stylish design that represents its functionality to the maximum extent was granted a Good DesignAward for FY2014. It adopts a high roof made of the latest carbon fiber which provides lighter cabin thanthe one made of other materials. Having a high ceiling and a cab roof strong enough for firefighting towork on it. Wide lateral LED working lamps illuminate a larger area and improve the safety during work atnight.
MVF is a completely new fire fighting vehicle that Morita is proposing. Since its launch, we have already received orders of morethan 20 units. MVFs’ usefulness and efficiency are increasingly expected for firefighting.
This new concept of firefighting vehicle is a proposal of Morita in its eagerness to save as many lives as possible.

Morita has developed and launcheda press-type garbage truck Press Master E-SVN.
Press Master E-SVN, recently developed and started selling by Morita Econos, is a presstype garbage truck which is designed for higher efficiency, less labor, and keep designed
safe improvement in garbage collection in a manner that considered the environment of
the local community.
Lighting devices and other items are centralized in our unique high-mounted rear panel tomake visibility from the rear better and improved safety. Furthermore, the height of the
input port was modified in order to reduce the work burden of those engaged in garbage
collection and improve the vehicle’s operability. The basic capability was improved with its
body capacity enlarged to the biggest of its class. Furthermore, in the electricity-driven
mode the vehicle is emission-free. It realizes the most garbage collection cycles insuccession in its class and also has reduced noise.
On top of all of the above features, the vehicle won the prize at the world-famous “iFDesign Award 2017” for its beautiful, strong design.
We will continue to make the most of what our customers are saying in pursuit of qualitythat is “Safer and easier to use. Urban-friendly!”Environmental Conservation
Vehicles Business

Press-type garbage truck Press Master E-SVN

O

Financial Highlights (Consolidated)
Operating income

Unit: Millions of yen: First half

23,4009,649(Forecast)

1,006
2016.32018.32017.32016.31,850950
2018.32017.3

Net income attributable toowners of parent company: First half

Unit: Millions of yen

10,1298,375

2016.3: First half

Unit: Millions of yen

6,040

9,000

2017.3: Full-year

5,400(Forecast)

4,709

2,052

1,833

: Full-year(Forecast)

8,123

2015.3

1,486

2015.3

Ordinary income

1,180

7,517

27,516

21,8992015.3: Full-year

8,700(Forecast)

8,240

68,57429,571: First half

Unit: Millions of yen

83,00085,063
71,943: Full-year

1,242

792

2018.32015.3

4,537922

2016.3

1,304664
2018.32017.3

Performance by Segment
Fire Protection Equipment & Systems BusinessFire Fighting Vehicles BusinessNet sales

Net sales

7,344 million yen
Income112 million yen

Year on year
Down 2.4%

Environmental Conservation Vehicles BusinessNet sales

4,860 million yen
Income222 million yen

IncomeYear on year
Down 62.2%

We h a v e b o o k e d o rd e r s fo r
Pack aged Automatic Fire
Extinguishing System “SPRINEX”;
however, the installations will becompleted principally in and after
the third quarter of the current
fiscal year.

Year on year
Down 1.6%
Year on year
Down 60.9%

Sales of new press-type garbage
truck “Press Master“ increased,
while par ts and components
sales decreased.

Year on year

13,671 million yen Down 10.5%
Year on year
Down 42.9%

577 million yen

Sales decreased in reaction to
the increase in domestic in theprevious terms.

26.7%
Net Sales
Composition

17.7%
6.0%

49.7%
Recycling Machines BusinessNet sales

1,640 million yen
Income24 million yen

Year on year
Down 10.6%

Loss of 9 million yen in
the same period of theprevious fiscal year

Produc t orders decreased;
however, the focus has been on
components and maintenancesales.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

Establishment

July 23, 1932

Capital

4,746 million yen

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, JapanMORITA CORPORATION

Development, manufacturing and sales of laddertrucks, fire trucks, other types of fire trucks andspecialty vehicles

Shiba256 Square Building 8F, 2-5-6 Shiba,
Minato-ku, Tokyo, 105-0014, Japan

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fireextinguishers, firefighting equipment and otherfire protection equipment

MORITA ENVIRONMENTAL
TECH CORPORATION

Executives
Chairman & CEOPresident
Director and Executive Vice President
DirectorDirector
Full-Time Corporate Auditor
Full-Time Corporate Auditor
Full-Time Corporate Auditor
AuditorManaging Corporate Executive Officer
Managing Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Masahiro Nakajima
Kazumi Ogata
Yukihiro Maehata
Mitsuo Isoda
Takao Kawanishi
Eiji Asada
Atsushi Sasaki
Yusuke Takano
Masaru Ota
Shinichi Kanaoka
Shinya Murai
Hiroko Urano
Naohisa Sakamoto
Mitsuru Ito

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan
Design and construction of waste recycling
facilities and other waste disposal facilities.
Development, manufacturing and sales of large
hydraulic equipment

28 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA ECONOSCORPORATION

Development, manufacturing and sales ofenvironmental conservation vehicles such assanitation vehicles and garbage trucks

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA TECHNOSCORPORATION

Aftercare service and maintenance of fire trucks
and of rescue equipment. Development,manufacturing and sales of electronic appliedmachinery and information processing machinery

BRONTO SKYLIFT OY AB

Development, manufacturing and sales ofcombined platform ladders and aerial platforms

Tampere City, Republic of Finland

Distribution of Shares by Type of Shareholder

Information about the StockBusiness Year

April 1 to March 31

Annual General Meeting ofJune
Shareholders
Reference Dates

Annual General Meeting of Shareholders - March 31
Year-end Dividend - March 31
Interim Dividend - September 30
Other dates published in advance as necessary

Method ofPublic Notice

Posted as electronic public notice on company website
http://www.morita119.com/kohkoku/index.html

Administrator ofthe Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Place of Clerical Office forthe above

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063

As of September 30, 2017
Treasury shares 3.6%

Securities companies 0.8%

Other Japanese
corporations
8.1%
Non-Japanese
corporations
12.8%

Total

46,918,542 shares

Individuals/others

Financial institutions
43.4%

31.3%

Top 10 Shareholders

As of September 30, 2017

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265
2,437

(Telephone Inquiries)+81-3-3323-8222

Morita Trading-Partner Shareholding Association(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html

Mizuho Bank, Ltd.

2,087

Stock Listing

Tokyo Stock Exchange

2,082

Number of shares per unit

100 shares

Sumitomo Mitsui Trust Bank, Limited
Japan Trustee Services Bank, Ltd. (Trust account)

2,057

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,048

Sumitomo Mitsui Banking Corporation

2,007

AIR WATER INC.

1,730

The Master Trust Bank of Japan, Ltd. (Trust account)

1,116

NORTHERN TRUST CO. (AVFC) RE HCR00

958[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.) before theshare certificates were computerized, an account (a special account) has been opened with
Sumitomo Mitsui Trust Bank, Limited, the administrator of the shareholders list. For details
regarding the special account, notification of address change, and so on, please contact thetelephone inquiry number listed above.
[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm where youraccount was established for notification of address change and so on. For shareholders who
do not have an account at a securities firm, please contact the telephone inquiry number
listed above.

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045
Tel. +81-6-6208-1907

Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003
Tel. +81-3-5777-5777
http://www.morita119.com

Notes:

1. ‌Number of shares held is rounded down to the nearest thousand shares.
2. ‌The Company holds treasury shares numbering 1,680 thousand shares.